While the emirate’s officials are keen to emphasize what differentiates Ras Al Khaimah from its U.A.E. neighbors, the similarities are undeniably there: its strategy revolves around a familiar theme which is to be the bridge between East and West and to that end it has established a number of free zones.

Peter Fort is economic adviser to Ras Al Khaimah’s ruler and also head of the RAK Free Trade Zone Authority.

RAK FTZA

“The formula is exceedingly simple. The same benefits you can get in other free zones in the U.A.E. – the tax free status, foreign ownership – at a much lower cost in both to set up and to operate. There’s no magic,” said Peter Fort, a former Morgan Stanley banker who is now economic adviser to Ras Al Khaimah’s ruler, Sheikh Saud Bin Saqr Al Qasimi, and also head of the RAK Free Trade Zone Authority, which accommodates around 7500 companies from over a 100 countries.

That more subdued approach has its advantages: the crisis wasn’t as severe in Ras Al Khaimah and its average 8% GDP growth in recent years outpaced the country’s average while its debt remained well below that of Dubai.

Mr. Fort now wants the free zone to reach out to markets it has until now mostly neglected.

“We’ve been ignoring a very large portion of the world and, frankly, it’s that portion that has very exciting growth potential,” said Mr. Fort, citing the examples of China and South Korea.

Ras Al Khaimah in recent history made some attempts to replicate the Dubai model. A Real Madrid theme park, for example, was cancelled due to the project organizer’s financial problems.

“The historical DNA here has been to focus on things that make sense, not so on big gambles that may or may not pay off,” said Mr. Fort.

Its proximity to the Strait of Hormuz makes the emirate a natural candidate to host companies looking to conduct business with Iran. It’s an opportunity, Mr. Fort seems bent on seizing.

“For foreign companies that want to prepare for the potential eventual easing of the sanctions this is the place to be without a doubt. If you wait until it’s all signed and finalized and lifted, it’s too late.”

Another component of the emirate’s economic strategy is tourism. Again, it is geared towards adding something Dubai may not have rather than heads-on competition, said Steven Rice, chief executive of the Ras Al Khaimah Tourism Development Authority.

“It’s calm, it’s tranquil – very different to Dubai. We feel that we complement it. We have to differentiate ourselves,” he said. The emirate’s hotel sector, while still small, is trying to keep up with the rise in visitors, most of which are from Russia, Germany and the U.K., and has added roughly 2,000 rooms in the past year.

One setback was the demise of national carrier RAK Airways but Air Arabia of neighboring emirate Sharjah has since then filled the void.

Looking ahead, Mr. Rice said there are early contacts with UNESCO for possibly obtaining heritage status in the future. Mr. Rice also looks East to tap Asian markets such as India and China, all initiatives that will require time.